Post Business: Business News and Views for Nashville

Noranda buys back more debt

Geert De Lombaerde — Fri, 06 Nov 2009 20:11:49 +0000

Third-quarter losses at Franklin-based Noranda Aluminum hit the middle of its previously projected range, coming in at $4.3 million. The company also bought back more than $80 million in debt during the quarter, pushing its year-to-date total in that deparment to almost $300 million.

You don’t absolutely have to get into Dollar General at its IPO price

Geert De Lombaerde — Fri, 06 Nov 2009 18:57:29 +0000

But it sure will help your portfolio if you do… Jutia contributor Brandon Clay says the Goodlettsville-based retailer likely won’t trade at a discount to Wal-Mart long after it goes public.

It’s a cash cow so long as the debt load can be managed and eliminated.

Cracker Barrel tweaks debt deals

Geert De Lombaerde — Fri, 06 Nov 2009 18:34:28 +0000

CFO Sandy Cochran has renegotiated the maturity dates of Cracker Barrel’s revolving line of credit (while also shrinking it by a third) and long-term loans. About two-thirds of the revolver now won’t be due until 2013, about 40 percent of the term loans until 2016. The tweaks will add about $2 million in interest costs this fiscal year for Cracker Barrel, whose shares (Ticker: CBRL) are flat on the day.

Go, Genesco, go

Geert De Lombaerde — Fri, 06 Nov 2009 17:56:13 +0000

Robert W. Baird analyst Mitch Kummetz has raised his rating on the Nashville retailer to ‘outperform.’ Kummetz, who two months ago was quite sober about the company’s prospects, also has lifted his price target to $34 from $25. On a lackluster day for the market, Genesco shares (Ticker: GCO) are up more than 3 percent.

A jobs jolt

Geert De Lombaerde — Fri, 06 Nov 2009 16:49:03 +0000

I know the basic argument that employment is a lagging indicator, but who’s going to stand up and say this number won’t make for a dismal holiday shopping season? And keep in mind that the official unemployment rate doesn’t account for people who have simply stopped looking for work. Add them in and we’re getting way too close to 20 percent.

Quorum prepares to hand off Arkansas hospital

Geert De Lombaerde — Fri, 06 Nov 2009 15:56:40 +0000

Sparks Hospital in Fort Smith, Ark., has agreed to sell itself to Health Management Associates for about $138 million, which means the two Quorum Health Resources who have been managing the 492-bed facility will soon be on their way back to the CHS home office in Brentwood.

In defense of the maligned market

Geert De Lombaerde — Fri, 06 Nov 2009 15:18:39 +0000

NYU professor Viral Acharya says we need to be careful when we talk about the financial crisis being caused by ‘the market’ failing to function properly. Regulators are there to patch up holes and prevent problems, he says, “but regulation also reduces market discipline” by introducing distorted incentives.

For instance, insured depositors are unlikely to “run” but they also freely deposit at the highest-yielding bank, not worrying about its credit risk. Thus, when regulators deem a bank as well-capitalized, the onus is on regulators that this be right. Markets may not have the incentive to gather this information nor possess the details of regulatory supervision that led to such an assessment. Conversely, when regulation allows itself to be arbitraged, the financial sector becomes more opaque exposing markets to unexpected outcomes.

Preliminary Q3 bank checkup: Better, but symptoms persist

Geert De Lombaerde — Fri, 06 Nov 2009 14:10:28 +0000

Chris Whalen says it looks like banks were no more stressed in the third quarter than in Q2. But they are by no means relaxed yet.

Since only the 19 Stress Text banks were really under pressure to window dress Q3 results for compliance purposes with the Fed’s SCAP stress tests, the inference we draw is that the rate of change in terms of stress throughout the industry was likewise more moderate in Q3.

NHC beats estimates

Geert De Lombaerde — Fri, 06 Nov 2009 13:55:52 +0000

Ho-hum. Another solid quarter from National HealthCare Corp., where third-quarter profits per diluted share of 74 cents handily topped analysts’ expectations. Patient days were flat, pricing was up a bit and operating profits grew almost 12 percent and a 5 percent rise in revenue.

Music biz veterans launch new venture

Geert De Lombaerde — Fri, 06 Nov 2009 13:31:12 +0000

Longtime artist manager Howard Fields has teamed with music publisher Everett Zinn, who was part of some of George Strait’s early career, and Montana businesswoman Dorris McMurry to launch McMurry Entertainment Group. The trio says they’re close to announcing an artist and distribution partner.